Prnsion

David1960

Hi I'm 57 and have been taking a works pension for about 4 years. The pension is part of the governments PPF. I'm now paying 40% tax on this small pension £300 per month. How or what can I do with this pension so I don't have to pay tax. I don't mind freezing it or anything as I don't need the money at this time. Or am I stuck with this extortion now. 40% seam like a lot of tax when your just on the threshold of this tax bracket. Can you help.

dunstonh

The pension is part of the governments PPF.

Just for reference, it is not a Government thing.

How or what can I do with this pension so I don't have to pay tax.

Reduce your earnings. Use tax wrappers, such a contributing to a pension

I don't mind freezing it or anything as I don't need the money at this time.

Its a bit late now. That decision needed to be made 4 years ago.

40% seam like a lot of tax when your just on the threshold of this tax bracket.

Putting it back into a pension seems to be the easiest solution then.

Linton

Very confusing - is the 4 year works pension the £300/month one or is the £300/month one something different? If the former case what is the extra income such that you are now in the HRT band?

If you have a non trivial amount of earned income (income from employment rather than pension, investments etc) you could put the £300/month straight back into another pension. This would give you full tax relief. You cant simply defer a Pension (except the State Pension) when in payment.

Incidentally how did you manage to get your pension before you were 55?